The company also announced that it had settled its three-year patent dispute with Juniper Networks (NYSE:JNPR) and ended all litigation.

Palo Alto Networks (NYSE:PANW) ended the quarter with more than 17,000 customers, up from 16,000 in fiscal Q2 and marking its highest customer-acquisition rate ever, company CEO Mark McLaughlin said in a conference call with analysts.

"We are winning customers because our platform is disruptive," McLaughlin said on the call. "The enterprise security market has been changing rapidly in the last few years, with the number of sophisticated attacks showing a lasting and growing phenomenon."

For the quarter ended April 30, revenue rose 49% from the year-earlier quarter to $150.7 million, beating the $146.2 million consensus estimate of analysts polled by Thomson Reuters.

The company reported earnings per share minus items of 11 cents, up 83% and beating analyst views by a penny.

Under the terms of the legal settlement, Palo Alto Networks will make a one-time payment to Juniper of $75 million in cash and $100 million in shares of common stock and warrants to purchase common stock.

March Mistrial

Juniper had filed suit in December 2011, claiming Palo Alto Networks' products infringed on six Juniper patents. In March, U.S. District Court Judge Sue Robinson declared a mistrial in the case.

Based in Santa Clara, Calif., Palo Alto Networks is a leading developer of next-generation technology used to protect company networks from virus attacks, malware and other security breaches. Its products include network firewall software and appliances. It also offers subscription services for threat detection and prevention, URL filtering, and mobile device security.

Palo Alto's stock slipped a bit in Wednesday's regular session to 69.51, 14% off its all-time high of 80.84, reached on March 18.

Investor expectations have been high for a company that pioneered next-generation firewall security protection in reaction to businesses' and employees' increasingly using applications available via the Internet cloud, making corporate networks more vulnerable.

In the quarter, Palo Alto Networks completed its acquisition of Cyvera, a privately held cybersecurity company based in Tel Aviv, Israel, for $200 million in cash and stock. Cyvera has developed technology that aims to protect enterprise users from cyberattacks and threats on any device, across any network. Analysts said Cyvera will expand Palo Alto Networks' total addressable market by $4 billion to $5 billion, on top of its current addressable market of $15 billion to $20 billion.

The company also announced that it had settled its three-year patent dispute with Juniper Networks (NYSE:JNPR) and ended all litigation.

Palo Alto Networks (NYSE:PANW) ended the quarter with more than 17,000 customers, up from 16,000 in fiscal Q2 and marking its highest customer-acquisition rate ever, company CEO Mark McLaughlin said in a conference call with analysts.

"We are winning customers because our platform is disruptive," McLaughlin said on the call. "The enterprise security market has been changing rapidly in the last few years, with the number of sophisticated attacks showing a lasting and growing phenomenon."

For the quarter ended April 30, revenue rose 49% from the year-earlier quarter to $150.7 million, beating the $146.2 million consensus estimate of analysts polled by Thomson Reuters.

The company reported earnings per share minus items of 11 cents, up 83% and beating analyst views by a penny.

Under the terms of the legal settlement, Palo Alto Networks will make a one-time payment to Juniper of $75 million in cash and $100 million in shares of common stock and warrants to purchase common stock.

March Mistrial

Juniper had filed suit in December 2011, claiming Palo Alto Networks' products infringed on six Juniper patents. In March, U.S. District Court Judge Sue Robinson declared a mistrial in the case.

Based in Santa Clara, Calif., Palo Alto Networks is a leading developer of next-generation technology used to protect company networks from virus attacks, malware and other security breaches. Its products include network firewall software and appliances. It also offers subscription services for threat detection and prevention, URL filtering, and mobile device security.

Palo Alto's stock slipped a bit in Wednesday's regular session to 69.51, 14% off its all-time high of 80.84, reached on March 18.

Investor expectations have been high for a company that pioneered next-generation firewall security protection in reaction to businesses' and employees' increasingly using applications available via the Internet cloud, making corporate networks more vulnerable.

In the quarter, Palo Alto Networks completed its acquisition of Cyvera, a privately held cybersecurity company based in Tel Aviv, Israel, for $200 million in cash and stock. Cyvera has developed technology that aims to protect enterprise users from cyberattacks and threats on any device, across any network. Analysts said Cyvera will expand Palo Alto Networks' total addressable market by $4 billion to $5 billion, on top of its current addressable market of $15 billion to $20 billion.

See Also

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